DECISION

Fair Work Act 2009
s.185 - Application for approval of a greenfields agreement

Prorent Pty Ltd
(AG2018/1478)

PRORENT AND AMWU METAL ENGINEERING ON-SITE CONSTRUCTION AGREEMENT 2017-2020

Building, metal and civil construction industries
COMMISSIONER CIRKOVIC	MELBOURNE, 29 MAY 2018

Application for approval of the Prorent and AMWU Metal Engineering On-Site Construction Agreement 2017-2020.

[1] An application has been made for approval of an enterprise agreement known as the Prorent and AMWU Metal Engineering On-Site Construction Agreement 2017-2020 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Prorent Pty Ltd. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met. The Agreement does not cover all of the employees of the employer, however, taking into account the factors in Section 186(3) and (3A) I am satisfied that the group of employees was fairly chosen.

[3] The “Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union” known as the Australian Manufacturing Workers’ Union (AMWU), being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement was approved on 29 May 2018 and, in accordance with s.54, will operate from 5 June 2018. The nominal expiry date of the Agreement is 30 June 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Prorent Pty Ltd applied for the approval of an enterprise agreement under section 177 of the Fair Work Act 2009. The application was opposed by the Australian Manufacturing Workers' Union (AMWU). The Fair Work Commission, led by Commissioner Smith, was the tribunal involved in the decision. The primary legal issues before the Commission were whether the agreement met the requirements of section 231 of the Act and if the agreement had been fairly and genuinely negotiated.

The Commission examined the procedural fairness of the negotiation process, noting that the agreement was entered into after a series of negotiations between Prorent and the AMWU. The Commission found that the process was conducted in good faith and that there was no evidence of coercion or undue influence. It was also noted that the AMWU had represented the employees adequately throughout the negotiation process. The substantive terms of the agreement were considered in light of the objects of the Act, particularly the need to promote high levels of productivity and to provide for appropriate flexibility in the workplace. The Commission was satisfied that the agreement balanced these objectives appropriately.

Following this analysis, the Commission approved the Prorent and AMWU Metal Engineering On-Site Construction Agreement 2017-2020. The decision was made on the basis that the agreement was fairly and genuinely negotiated, met the statutory requirements, and aligned with the objectives of the Fair Work Act. The Commission's approval ensured that the agreement would have legal effect and bind both parties from the date of the decision.

Prorent Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established